Own a Home in Clinton, Utah with a ZERO down using a Utah Housing Home Loan
Last Updated on Wednesday, 21 April 2010 06:57 Written by Casey Wednesday, 21 April 2010 06:57
Blogisode 164
The Utah Housing Corporation offers a phenomenal loan program for first time buyers looking to purchase a home in Clinton, Utah. “First time buyers” are defined as those who have never had a mortgage, those who have not had a mortgage for more than 3 years, or divorced parents. The guide lines of this loan program, for the most part, mirror those of most FHA lenders. Utah Housings Corporation’s Debt to Income or DTI for this loan program is as follows. They would like for the borrowers ratios to be not greater than 31/45. Utah Housing want their borrowers first or front end ratio (which is calculated by dividing the house payment into the gross monthly income) to be no greater than 31%, however, I have originated loans with higher front end ratios than that. The real trick is the back end ratio which is comprised of the entire borrower’s debt….cars, credit card, and mortgage, etc. This magic number is 45%. Utah Housing does allow for compensating factors which may sway the underwriter’s approval of a loan on the front ration but they will not allow for a back end ratio higher than 45%.
The Utah Housing home loan is not eligible for refinance it is for purchases only. It is designed to help borrower with a minimum of a 660 Mid Fico Score borrower up to $372,000 on a home in Clinton, Utah without bringing any money into closing other than the $500 earnest money the borrower gave when they wrote an offer on the home. There are income restrictions on this loan. The total household income from all sources can not exceed $68,500 for households of 1 to 2 borrowers. With a household of 3 or more people the total income can not exceed $78,500.
The Utah Housing first time buyer loan is split up into two loans a first and a second mortgage. The first mortgage is for 96.5% of the purchase price The second mortgage is for the 3.5% down payment that FHA loans require a borrower have bringing your loan to 100% of the purchase price and in some cases allows for of the closing costs that occur when purchasing a home. This total amount is typically between 5-6% of the sales price of the home.
The first mortgage with the help of government aid has typically a little bit better interest rate than what ever an FHA of VA loan is offering and the second mortgage for the down payment that FHA requires and closing costs is at 7% (as if 4/19/2010 rates are subject to change at any given movement). With a Utah Housing first time buyers loan the rate can not be locked until it has been underwritten, the appraisal has been completed, all conditions have been cleared, and the lender has given a clear to close notification.
Like an FHA loan this loan has an UFMIP of 2.25% of the purchase price and includes a monthly mortgage premium as well. You will also be required to pay your property taxes and hazard insurance in an escrow account.
My office is located at 2017 N Main Street Suite 204 in Layton, Utah about 5 miles from Clinton, Utah a short 10 minutes south on I-15. I would be more than happy to help you with any of your home loan questions and scenarios. Call me at 801-682-5626 and ask for me, Casey Persinger; The Low Price Lender.
